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OMVIC Chapter 1- 18 | 100% Correct Answers
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What is the primary legislation governing Ontario's retail automotive sector? - ✔✔Moter Vehicle Dealers Act, 2002 Which body or agency enforces MVDA? - ✔✔OMVIC List Three Functions carried out by OMVIC - ✔✔
- Administers and enforces the MVDA
- Inspects dealers 3)Maintains a complaint line for consumers
- Conducts investigations
- Conducts disciplinary hearings
- Conducts prosecutions
- Administers the Compensation Fund How many people compose OMVICS board of directors? How many dealers? How many consumers? - ✔✔12 total 9 dealer 3 consumer Briefly explain the "Transactional Fee Program" - ✔✔Under the transaction fee program , dealer are required to remit $10 for each vehicle sold or leased (included fleet and "as is" transactions ) to OMVIC. These funds are remitted annually with the dealers registration renewal fee. True or False: The transaction fee can be passed along to the customer? - ✔✔True True or False: Under the Transaction Fee Program, dealers are required to remit $10 (to OMVIC) for each retail vehicle sold or leased? - ✔✔True
What information is OMVIC required to make available to the public? - ✔✔1) A dealer's business name, address and phone number
- A salespersons name
- Any proposal to refuse to renew, suspend or revoke the registration of a dealer or salesperson Should OMVIC determine a dealers advertising to be false or misleading, what powers does OMVIC have to stop or correct it? - ✔✔OMVIC may issue an order requiring the dealer to cease publication and/or issue a retraction or correction If an order is used to stop or correct false advertising, for how long may the dealer need to seek OMVIC's pre-approval for future advertising? - ✔✔Up to 2 years List two possible situations which could result in OMVIC applying to a court to appoint a receiver and manager to assume temporary control of a dealership. - ✔✔This action might be taken if:
- If there has been an investigation
- If the dealership is about to fail
- If OMVIC is proposing to revoke a registration
- If a freeze order is about to be made What is the minimum age requirement to become a dealer? - ✔✔18 years old List the three requirements that must be met when applying to become a salesperson? - ✔✔1) Complete/Pass certification course
Should OMVIC issue a proposal to refuse (or revoke) registration , to whom can the applicant appeal? - ✔✔License Appeal Tribunal (LAT) List the four "classes" of dealers - ✔✔1) General Dealer
- Broker
- Wholesaler
- Exporter
- Outside Ontario Dealer
- Lease finance dealer 7)Fleet Lessor List three examples of individuals or businesses that are exempt from registration. - ✔✔1) Wholesale auction
- Wrecker
- Person selling a vehicle used for family or for a sole proprietorship business Name one "change of information" that a dealer must notify OMVIC about. - ✔✔1) Change of dealers address
- Changes of officers or directors (if dealer is a corporation or partnership
- The date of commencement of employment of every salesperson
- The termination of employment of a salesperson and the date and reason for termination In a large dealership, if the dealers principle delegates responsibility for ensuring that salespersons are registered, this should be delegated to who? - ✔✔The Sales Manager
OMVIC can refuse, revoke or suspend registration to a dealer , salesperson or corporation if the financial responsibility or past conduct of an "interested person in respect of the applicant / registrant" gives reasonable grounds for it. Who might OMVIC consider an "interested person"? - ✔✔1) Has or may have a beneficial interest in the business
- Exercises or may exercise control either directly or indirectly over the dealer / salesperson
- Has provided or may have provided financing either directly or indirectly to the business Where is the certificate of the dealer registration kept? - ✔✔Posted so the public is likely to see it True of False: A salesperson must produce his or her registration certificate for inspection if a customer asks to see it? - ✔✔True True or False: Dealers may sell vehicles from any location, so long as they have registered a head office with OMVIC - ✔✔False List the three requirements for a dealers premises - ✔✔1) Have a business office (large enough to store records securely)
- Have a clearly visible sign identifying registered name
- Be approved for use as a dealership by municipality How long does the MVDA specify how long a dealer must maintain their records? - ✔✔They must keep the records for a minimum of 6 years
True or False: Before issuing a freeze order (freezing the dealers assets or trust funds), OMVIC must first notify the dealer? - ✔✔False On a purchase contract, what must be printed in 14 pt. bold font next to the buyer's signature? - ✔✔The mandatory "Sales Final" statement If a dealer does not have a specific new vehicle in stock but will locate the vehicle and bring it in, what must be disclosed to the purchaser regarding the milage? - ✔✔A maximum distance that will be shown on the odometer at the time of delivery or a statement (initialled by the buyer) that there is no maximum If a Safety Standards Certificate is issued for a vehicle, it means? - ✔✔The vehicle met certain basic standards of safety on the date of inspection What does the term "as is" mean? - ✔✔The vehicle is not represented as being in roadworthy condition, mechanically sound, or maintained at any guaranteed level of quality. The vehicle may not be fit for use as a means of transportation and may require substantial repairs at the buyer's expense. It may not be possible to register the vehicle to be driven in its current condition. What must an "as is" sale include in the contract? - ✔✔Must include a specific definition of "as is" in the contract True or False: A dealer selling a vehicle "as is" may also provide a Safety Standards Certificate for the vehicle? - ✔✔False Contracts must have advisory or educational statements designed to inform purchasers /lessees about their rights and responsibilities and to ensure they know about the existence of certain agencies or organizations. What are these organizations / agencies? - ✔✔1) OMVIC
- Motor Vehicle Dealers Compensation Fund
3) CAMVAP
If customers give dealers a deposit but do not sign a contract, what rights do they have? - ✔✔If there is no signed contract and a deposit or trade-in is given to the dealer, the purchaser can cancel the contract at any time and demand his or her deposit or trade-in back. List three "previous uses of a vehicle" dealers must disclose - ✔✔Taxi Limo Police Vehicle Emergency service vehicle Daily Rental (Unless subsequently owned by someone other than a dealer) List three types of incident damage that must be disclosed - ✔✔Collision (greater then $3000 in damage) Fire Flood Structural Damage or altercations True of False: Dealer A buys from a daily rental company, a car previously used in the rental fleet. Dealer A then sells the car (giving full disclosure of the car's history as a daily rental) to a consumer who buys it for personal use. A year later, the consumer trades that car in to Dealer B. Dealer B does a history search and sees the car was once a daily rental. Under Regulation 42 of the MVDA, when Dealer B sells this car to another customer they are not required to inform the customer of the cars previous use as a daily rental. - ✔✔True
Disclosure must be provided in a timely manner, in writing and be presented in a way that is: - ✔✔Clear, comprehensible and prominent Give two examples of steps dealers can take to ensure they know the history of vehicles they buy or accept in trade. - ✔✔1) Use a vehicle history report 2)Understand the strength and weaknesses of the various vehicle history reports
- Thoroughly examine the vehicles The MVDA remedy of rescission (cancellation of a sales contract) is available only to a customer who is a "consumer"? - ✔✔False Rescission is only granted automatically for failing to disclose what? - ✔✔1) The make, model, and year of the vehicle
- The vehicle was previously a taxi or limo
- The vehicle has been branded There are three disclosure requirements that, if not met trigger a customer's rescission rights. What are they? - ✔✔Recession is triggered if the following is not disclosed:
- Previous use as police/emergency services vehicle
- Previous use as daily rental (unless subsequently owned by someone other than a dealer
- Mileage / distance travelled
True or False: The remedy of rescission is available to a customer who is also a dealer. - ✔✔False
